Silver markets fell hard during the trading session on Tuesday, breaking back down below the $18.50 level. By doing so, it looks as if the market is going to try to find some type of normalcy, perhaps closer to the $18 handle. Silver is an industrial metal as well as a precious metal, so keep that in mind. It is because of this that gold rallied while silver struggled a bit from the lows. This doesn’t mean that we can’t rally from here, and quite frankly I think we will eventually. We may have to stabilize a little bit in the meantime though, perhaps sending this market sideways more than anything else. If the market does dip though, signs of support or of bounce should be jumped on as a buying opportunity.
SILVER Video 26.02.20
You can make a bit of an argument for a double top so far, but I don’t think this will last very long. Given enough time it’s likely that the markets will continue to go higher as we were about the coronavirus and perhaps even more importantly: central bank loose monetary policy which will drive precious metals higher over the longer term. I don’t have any interest in trying to short this market, I believe that it is far too bullish in general right now to short, and quite frankly there’s no sign of global fears around the world being combed. Even if the coronavirus situation in China does get better, the reality is that the virus has already escaped that country. With that, there should be plenty of buyers.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Price Update – Bearish API Report Should Crush the Market
- Gold Price Prediction – Prices Ease Despite Drop in Riskier Assets
- EUR/USD Mid-Session Technical Analysis for February 25, 2020
- How Low Can US Bond Yields Go?
- EUR/USD Price Forecast – Euro Rolling Over Again
- Natural Gas Price Forecast – Natural Gas Markets Quiet on Tuesday